Inflation, rising prices leave first-time homebuyers with affordability hurdles
Local prices may differ from national trends
InvestigateTV - There are two big reasons first time homebuyers continue to struggle as they attempt to get into the housing market: rising home prices and less buying power due to inflation. Both factors combine to make homes less affordable.
Elizabeth Renter, a data analyst with Nerd Wallet, has seen affordability decline for first-time buyers. Homes are listing around 6.6 times their income, as opposed to the general rule of three times yearly income.
Renter said the good news is that her numbers are averages and every housing market around the country is different. So, the data informing your decision is going to vary greatly depending on where you are looking to buy.
“I would say potential buyers shouldn’t weigh national headlines too heavily and pay attention to what’s happened locally. Big country. Many markets. There’s a lot that is different from place to place,” Renter observed.
The best takeaway, according to Renter, is to find trusted local professionals: real estate agents and mortgage brokers that can help you navigate opportunities in your area.
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